With the first month of 2022 is about to close, Bitcoin prices are recording the levels much lower levels. The star crypto may rebound in the next 2 to 3 days but the technicals point out a contrast rally. The monthly close of the asset could determine the next move which currently appears to be captivated under the bears. If BTC price rebounds above certain levels then the price may prevent sliding below the support levels in the future.
Bitcoin chart in the monthly time frame is manifesting a notable bearish trend and the indicators pointing out a downward trend is,
- The first month that Bitcoin may close the monthly trade below the EMA-10 which is around $44,455 since March 2020
- The MACD & RSI are showcasing bullish divergance but trending lower pointing towards a bearish trend
- Conversely, a minor chance of going parabolic could be when the price remains above EMA-21. And closing above these levels may indicate that the bulls may be still fighting
The monthly close below the 21-day EMA of around $36,500 can lead to a 3 crows pattern which is an extremely bearish signal. Whenever this pattern emerges, then the asset usually witnesses an initial bounce and then a strong drop. However, the monthly candle close is much required for confirmation. On the other hand, a double-top pattern in between April and November 2021 and hence if the monthly close hits the neckline at $33.524, then it could be extremely bearish for the asset.
Collectively the bears are still very much in power currently, as, despite minute jumps and recoveries, the fear of a huge drop always hovers the rally. Bitcoin being at similar levels it ways a year before is a little matter of concern. Yet on the contrary plunging to the lower levels may also allow new entries into the platform. Therefore, the upcoming monthly close is currently extremely important to decide the next phase of action for the BTC price.
Source: https://coinpedia.org/bitcoin/bitcoin-monthly-close-on-the-horizon-levels-to-watch-out-for/